An Indicative Foreign Exchange Rate will be provided to clients prior to 8:00 am AEDT daily, as an approximate conversion rate.
A 60 basis points spread (bps) fee will be applied as part of the conversion from AUD to USD and vice versa.
All AUD to USD Cash Account transfers submitted prior to 9:00 am will be logged and converted at a fixed rate supplied at 2:00 pm AEDT. This will be shown in a transaction summary emailed to you with details of the transfer. The funds will appear in your USD Cash Account prior to the US Market opening that evening.
There are no fees on the purchase or sale of the US securities related to Foreign Exchange.
An example of how the Exchange is converted:
A client transfers $100 AUD into USD
Phillip Capital Limited will provide an FX rate of 1.3990
A 60bps spread is then applied. This finalises the conversion rate at 1.4050
$71.17 USD will then be credited into client's USD ledger
How Do Currency Transaction Fees Work?
PhillipCapital, SelfWealth’s international equities provider, manages all foreign currency transactions for settlement of international equities trades.
A foreign currency transaction occurs when a client converts money between AUD and USD. At time of conversion PhillipCapital apply a markup on the FX rate booked at the prevailing market price to achieve the FX rate you will receive. We provide an indicative rate to give you a rough idea as to how much you will receive and will update this rate when the money is transferred around 2.30 pm each day, Sydney time. This rate can move in either direction in this time period. Processing of Foreign currency transactions occurs daily between 10 am and 2 pm Sydney time in order to meet foreign market settlement processing times.
Neither SelfWealth nor PhillipCapital charge any additional fees outside of the markup.
How a Transfer Works
If the price of AUDUSD at the time of processing (between 10 am and 2 pm AEST) received by PhillipCapital is 0.7250 (FX rate booked 1.37931) PhillipCapital will adjust the AUDUSD price by +/-0.0060 depending on whether the client is buying or selling USD, to achieve the FX rate for you. If you are selling AUD and buying USD, you would therefore receive an AUDUSD rate of 0.7190 (a rate of 1.39082). Calculated as 0.7250 – 0.0060 = 0.7190. If you were converting 12,000 AUD to USD at a rate of 0.7190 you would receiver 8,628 USD.
As SelfWealth members are given a USD cash account when they add US share trading to their portfolio, FX fees are only incurred when moving between the two currencies, rather than when a trade is made, as other platforms do.
Funds will be available in USD the same day at approximately 2.30 pm if transferred before 9 am, otherwise, funds will be available the next business day. While being transferred, the funds will appear as “reserved” in your account. A transfer cannot be cancelled once initiated.
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